Question: What financial advisor should you choose as an AT&T employee?
The answer to such a question is a daunting task because there are many financial advisors and many different investment strategies. First, we must break down the different types of financial advisors.
There are many different kinds of professionals that can assist with retirement income planning out there, and just as many different titles. Advisor, planner, counselor, agent, certified, chartered, financial, insurance, legal…pick your combo and you can probably find someone who goes by that label.
Financial advisors come from a number of different backgrounds and offer a variety of services. The generic term “financial advisor” can include (but is not limited to):
Registered Investment Advisors (RIAs)
Investment Advisor Representatives (IARs)
Certified Public Accountants (CPAs)
Licensed Insurance Professionals
Before on which kind of professional you hire, here’s what they can help you with:
Assessing your current financial situation
Setting up a budget and estimating future expenses
Setting up and investment portfolio
Managing stocks, bonds, and mutual funds
Establishing sources of retirement income
Before deciding on which type of professional you need, find out how he or she will get paid. Different types of licensed professionals are paid in different ways. If their services are fee-based, it means they get paid by you based on a set percentage on the assets they manage for you and through commission for certain products they sell, such as annuities, where the commission is paid from the issuing insurance company. If they are fee-only, also knows as “no commission”, they they’re only paid by you based on a set percentage of the assets they manage for you; a flat annual fee or an hourly rate. Ask a fee-only advisor whether he or she charges a percentage, fixed fee or by the hour, and what’s included. Bringing a licensed professional on board to help plan your retirement can help ensure that all your bases are covered, leaving you free to enjoy your golden years to the fullest.
HOW DOES THIS APPLY TO AT&T EMPLOYEES? Here at Quest Financial we notice that our clients like to deal with fiduciary advisors. Also, they like a hybrid approach to investment with a focus on protecting their principle.
Of course, each individual is different and that means their risk tolerance can be different. However, in our experience, AT&T employees tend to invest more safely than they initially thought they would.
We feel that the best approach to investing is introducing an AT&T retiree to an advisor who can offer as much safety as reasonably possible. That is why we have created the concept of “The 3 Worlds of Money”. Every individual wants three things from their investments: safety, liquidity, and growth; and in the perfect world, there would be an investment that contains all three of those attributes. But unfortunately an investment like this does not currently exist. Each investment world has its own imperfection.
If you choose an investment that has guaranteed safety along with liquidity it will lack growth potential. For example, a savings account at a bank.
You risk taking losses if you choose an investment that offers growth with liquidity. Think stock market; stocks, bonds, mutual funds, etc.
Lastly if you choose something that guarantees safety, and also has reasonable growth, you will sacrifice liquidity. This would be insurance products like fixed index annuities.
In the end, none of the three worlds are the best by themselves. But combined they can create a near perfect retirement distribution plan which creates safety, liquidity, and growth. Our advice is to work with a financial advisor to determine your risk tolerance and to put together a plan that works best for you. Call866.QUEST.01(866-783-7801) to speak to one of our advisors.
Investment Advisory services offered through ChangePath, LLC a Registered Investment Advisor. ChangePath, LLC and Quest Financial are unaffiliated entities. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. Neither ChangePath, LLC or Quest Financial are endorsed or recommended by AT&T.
Licensed Insurance Professional. We are an independent financial services firm helping individuals create retirement strategies using a variety of investment and insurance products to custom suit their needs and objectives. Investing involves risk, including the loss of principal. No Investment strategy can guarantee a profit or protect against loss in a period of declining values. Any references to protection benefits or lifetime income generally refer to fixed insurance products, never securities or investment products. Insurance and annuity products are backed by the financial strength and claims-paying ability of the issuing insurance company. The information is not intended to be investment, legal or tax advice. The agent can provide information, but not advice related to social security benefits. The agent may be able to identify potential retirement income gaps and may introduce insurance products, such as an annuity, as a potential solution. For more information, contact the Social Security Administration office, or visit www.ssa.gov.